UK plans high street support funded by gambling tax

The government of UK Prime Minister Andy Burnham has announced a package in its budget aimed at high street businesses, meaning small businesses in city centres. The government plans to raise the business rates threshold so that more businesses are exempt, while some will face a fixed tax burden in real terms. Chancellor John Healey said this support will be paid for by a tax increase on gambling machines.

According to Healey, adult gaming centres and vape shops will be excluded from this business rates support. The minister said the revenue from the gambling tax will be channelled into growth in city centres.

Anti-gambling campaigners welcomed the decision. MP Alex Ballinger argued that supporting the high street should rely on local businesses, not on the interests of the gambling sector. Dawn Butler said that a sector seen as harmful is being taxed to channel resources to good businesses.

The industry, meanwhile, continues to criticise the decision. Former Chancellor Rachel Reeves cited the fight against harm as the reason when she nearly doubled the remote gaming duty. However, the industry points out that the tax revenue has not been directed to harm reduction measures.

In the same budget, a temporary three percentage point windfall tax on the banking sector will be used to support energy bills. Healey thanked the banking sector for its contribution to the economy and called on it to give ordinary people some breathing space.